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CNBC
3 days ago
- Business
- CNBC
Why ether ETF inflows have come roaring back from the dead
Ether ETFs have finally come to life this year after some started to fear they may be becoming zombie funds. Collectively, the funds tracking the price of spot ether are on pace for their sixth consecutive week of inflows and eight positive week in the last nine, according to SoSoValue. The second largest cryptocurrency has become more attractive to institutions in recent weeks largely due to recent regulatory momentum in the U.S. around stablecoins – many of which run on the Ethereum network – the successful IPO of Circle, the issuer of the second-largest stablecoin; and new leadership at the Ethereum Foundation. "What we're seeing is institutional recalibration," said Ben Kurland, CEO at crypto charting and research platform DYOR. "After the initial ETH ETF approval fizzled without a price pop, smart money started quietly building positions. They're betting not on price momentum but on positioning ahead of utility unlocks like staking access, options listings, and eventually inflows from retirement platforms." The first year of ether ETFs, which launched in July 2024, has been characterized by weak demand. While the funds have had spikes in inflows, they've trailed far behind bitcoin ETFs in both inflows and investor attention – amassing about $3.9 billion in net inflows since listing versus bitcoin ETFs' $36 billion in their first year of trading. "With increasing acceptance of crypto on Wall Street, especially now as a means for payments and remittances, investors are being drawn to ETH ETFs," said Chris Rhine, head of liquid active strategies at Galaxy Digital. Additionally, he added, the CME basis on ether – or the price difference between ether futures and the spot price – is higher than that of bitcoin, giving arbitrageurs an opportunity to profit by going long on ether ETFs while shorting futures (a common trading strategy) and contributing to the uptrend in ether ETF inflows. Despite the uptrend in inflows, the price of ether itself is negative for this month and flat over the past month. For the year, it's down 25% as it's been suffering from an identity crisis fueled by uncertainty about Ethereum's value proposition, weaker revenue since its last big technical upgrade and increasing competition from Solana. Market volatility driven by geopolitical uncertainty this year has not helped. In March, Standard Chartered slashed its ether price target by more than half. However, the firm also said the coin could still see a turnaround this year. Since last week's big spike in inflows, they've "slowed but stayed net positive, suggesting conviction, not hype," Kurland said. "The market looks like a heart monitor, but the buyers are treating it like a long-term infrastructure bet."
Yahoo
09-06-2025
- Business
- Yahoo
ETH Surges as Spot ETF Inflows Hit 15-Day Streak, Traders Watch $2,540 Level
Ether (ETH) ETH is up 1.28% in the past 24 hours to reach $2,538.25. This comes as new data from CoinShares shows ETH drew in $295 million in weekly inflows, the most of any digital asset last week. The surge brings month-to-date flows to $296 million and lifts Ethereum's total assets under management to $14.09 billion. Technically, ETH rebounded from earlier weakness to retest the $2,540 resistance level after consolidating near $2,500, according to CoinDesk Research's technical analysis model. The recovery reflects renewed confidence among institutional investors, who have now supported 15 straight trading days of spot ETF net inflows according to SoSoValue. Combined with steady DeFi and staking growth, ETH appears poised to benefit if it can firmly clear $2,540. Technical Analysis Highlights ETH traded in a 24-hour range of $57.91 (2.31%), between $2,482.99 and $2,540.10 Key resistance held at $2,540 while support formed around $2,483-$2,485 A breakout at 08:02 saw ETH surge 1.33% on 8,337 units of volume Trading volume peaked at 253,612 ETH during a sharp reversal Price structure reflects a potential bullish flag with a golden cross between the 50- and 200-day moving averages Consolidation above $2,520 suggests buyers remain in control short-term Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-05-2025
- Business
- Yahoo
XRP Falls Below 200-day Average, Bitcoin Dips to $105K as Traders Eye Core PCE
The crypto market mood was sombre Friday, with XRP XRP losing key support alongside losses in market leader bitcoin and other major tokens, as traders awaited the Fed's preferred inflation measure, the core PCE. Payments-focused XRP dipped below the 200-day simple moving average (SMA) for the first time since April 10, indicating a strengthening of downward momentum. Prices fell below $2.20, registering 4.6% losses on a 24-hour basis, according to data source TradingView. The decline followed reports of increasing demand for XRP as a corporate Treasury asset. Prices for BTC, the premier digital asset by market value, briefly fell below $105,000 during European hours, extending overnight losses to trade nearly 3% lower on a 24-hour basis. BTC's losses followed a $358 million net outflow from the 11 spot bitcoin exchange-traded funds (ETFs) Thursday, their first since May 13 and highest single-day tally since March 11, according to data source SoSoValue. Renewed trade war fears also weighed over the sentiment. Other majors, such as ETH, SOL, and DOGE, posted larger losses, with smaller tokens like OP, ARB, BONK, and PEPE falling by over 10% each, according to data source Coingecko. Consumer prices, represented by the personal consumption expenditure index, rose 0.15% on a monthly basis in April, bringing the annual inflation rate down to 2.2% from 2.3% in March, according to economists surveyed by FactSet. The core PCE, the Fed's preferred inflation measure, which excludes volatile food and energy prices, is forecast to have risen 0.12% on a monthly basis and 2.5% on an annual basis. Another good month for inflation could raise Fed rate cut bets, boding well for BTC and other assets. "All eyes now turn to the Core PCE data due today, which could reignite bullish sentiment if inflation shows signs of easing," Valentin Fournier, Lead Research Analyst at BRN, said in an email.
Yahoo
21-05-2025
- Business
- Yahoo
Sell in May? Bitcoin Tops $107K, Could Hit Record Highs This Summer Say Analysts
"Sell in May and go away," goes the Wall Street adage for equity markets every summer. For bitcoin BTC, though, some analysts say this season could mark a break from tradition. "As we get into the European summer months, the sense is it's more likely a case of 'buy in May and go away' than any significant headwinds or selling pressure," said Paul Howard, director at crypto trading firm Wincent in a market note. A confluence of positive regulatory developments around digital assets in the U.S. and increasing institutional buying both via exchange-traded funds and spot allocation is poised to push BTC higher in the next months, Howard said. U.S.-traded spot bitcoin ETFs, for example, pulled in $667 million in net inflows on Monday with BTC pausing just below its January record, underscoring persistent demand, he noted. The vehicles attracted $3.3 billion in May, per SoSoValue. On top of that, there's been a flurry of companies joining Michael Saylor's Strategy (MSTR) adding bitcoin to their treasury, financed by debt and stock issuances. "As we edge closer to a $4 trillion market cap for digital assets, we will see BTC cross all-time-highs in the coming weeks," Howard said. The total crypto market cap currently stands at around $3.3 trillion, per TradingView data. Historically, summer months have been slow for crypto assets, but macro and political forces are also converging in ways that could disrupt the typical seasonal lull, analysts at crypto analytics firm Kaiko pointed out. The Federal Reserve's next interest rate decision in June will precede Donald Trump's July 9 tariff deadline for trade partners, both of which could trigger market-wide volatility, the report said. Bitcoin options markets are already flashing signs of investor anticipation, Kaiko analysts said. Strike prices at $110,000 and $120,000 for the June 27 expiry have drawn heavy volume, suggesting bets on BTC making a record-breaking move, the report noted. Bitcoin briefly topped $107,000 during the Tuesday session, gaining 1.2% over the past 24 hours and trading just 2% below its January record high.
Yahoo
18-05-2025
- Business
- Yahoo
Over $5B Pouring into Bitcoin ETFs – Thanks to Bold Directional Bets
Billions of dollars have flowed into the U.S.-listed spot bitcoin BTC exchange-traded funds (ETFs) in recent weeks, as the cryptocurrency chalked out a sharp recovery rally from $75,000 to $100,000. Most of the investment is likely driven by bold, strategic bullish directional bets rather than market-neutral arbitrage plays, data analysis suggests. The 11 spot ETFs drew in $2.97 billion in investor money in April, with an additional $2.64 billion flowing in so far this month, according to data source SoSoValue. That has boosted the net inflow since inception in January 2024 to over $41 billion. Institutions have historically used these ETFs to set up non-directional arbitrage plays to profit from price discrepancies between futures and spot bitcoin markets. The so-called cash and carry arbitrage involves buying ETFs while simultaneously selling the CME futures to pocket the futures premium while bypassing price direction risks. But inflows since early April seem driven by bullish directional bets, not arbitrage plays. That's reflected in the Commitment of Traders (COT) report published by the Commodities Futures Trading Commission (CFTC) every week. The data shows leveraged funds, typically hedge funds and various types of money managers, including registered commodity trading advisors, have trimmed their net shorts to 14,139 contracts from 17,141 contracts in early April, according to data tracked by Tradingster. The number of shorts would have risen if carry trades had primarily driven the net inflows. "CFTC data shows leveraged funds didn't significantly increase short positions, indicating most flows were directional bets, not arbitrage," Imran Lakha, founder of Options Insight, in a blog post published on Deribit. The shift in the nature of inflows in the ETFs suggests large players are increasingly using the ETFs to express a clear market outlook on bitcoin's future direction. Bitcoin last changed hands at $102,700 at press time, according to CoinDesk data. Sign in to access your portfolio
